Simple interest paid for 2years on a sum of Rs25,500 borrowed at 8.5%p.a.is Rs
Rs3932
Rs4250
Rs3225
Rs4335
Given ,
P=Rs25,500R=8.5%p.a.T=2yearsSI=P×R×T100=25500×8.5×2100=Rs4335
Hence, the simple interest is Rs 4335.
Reena and Ruchira borrowed Rs. 60,000 and Rs. 50,000 respectively for a period of 3 years. Reena paid simple interset at the rate of 10% per annum, while Ruchira paid compound interest at the rate of 10% compounded annually. Who paid more interest and by how much?